In-Depth Analysis
Zimbabwe
The end of Robert Mugabe’s 37-year presidency presents a huge opportunity to turn around the mismanaged economy. The situation is fluid as the new team begins to govern.
Real GDP growth was left unchanged during this forecasting round with the economy expected to grow at a rate of 1.7% in 2018. Zimbabwe’s economic performance throughout the first part of the year has been underpinned by growth in key sectors such as agriculture and mining. In the agricultural sector, tobacco outperformed initial projections following a record harvest season. Meanwhile, gold, platinum, chrome, coal and other key minerals benefited from a substantial uptick in general mining activity. Although we expect positive economic growth this year, most of it is due to large amounts of unsustainable government spending. Macroeconomic weakness continues to persist in the form of a growing liquidity crisis, unsustainable government expenditure, including high levels of debt. (Source: Zimbabwe Quarterly Update, published November 2018)
Macroeconomic Data
(2018)
|
Fiscal Balance (as a % of GDP) |
-17.5 |
|
Consumer Price Index (% change y-o-y, avg) |
7.8 |
|
Current Account Balance (as a % of GDP) |
-5.7 |
|
Real GDP (annual % change) |
1.7 |
|
GDP per Capita, US$ |
1,054 |
|
Import Cover (months) |
0.3 |
|
Population, million |
16.9 |
| Total External Debt (as a % of GDP) |
71.6 |